The assumptions of regression are: 1) there is a population regression line, 2) the dependent variable is normally distributed, 3) the standard deviation of the response variable remains constant as the explanatory variables increase, and 4) the errors are probabilistically independent

a. True
b. False
Indicate whether the statement is true or false


True

Business

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Discounts taken by a buyer because of early payment are recorded on the seller's accounting records as

A) Purchases discount B) Sales discount C) Trade discount D) Early payment discount

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Most of a firm’s profits being generated by a relatively small group of customers is referred to as the?

a. 90/10 rule b. 80/20 rule c. 70/30 rule d. 50/50 rule

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"Policy adjustment" is another term for secret warranty

Indicate whether the statement is true or false.

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Which of the following is true?

A) The two-bin system is an example of the order point system. B) Order quantities are fixed in the periodic review system. C) The safety stock does not depend upon the frequency of reorder. D) All of the above are true. E) None of the above is true.

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